Key Terms

Question 1

Goods

Answer 1

An item that a customer wants or needs.

You can touch the product.

Question 2

Primary sector business

Answer 2

Extract raw materials from natural resources

Question 3

Secondary Sector Business

Answer 3

Take the raw material (eg.steel) and turn them into a final product (eg.car)

Question 4

Tertiary Sector Business

Answer 4

Provide a service (eg.Tesco)

Question 5

Who owns the business (sole trader)

Answer 5

The sole trader

Question 6

Number of owners (sole trader)

Answer 6

1

Question 7

What liabilities are there (sole trader)

Answer 7

Unlimited liabilities

Question 8

What happens if the owner dies (sole trader)

Answer 8

The business ends

Question 9

Who owns the business (partnership)

Answer 9

The partners

Question 10

Number of owners (partnership)

Answer 10

2-20

Question 11

What liability is there (partnership)

Answer 11

Unlimited liability

Question 12

How is the business established (partnership)

Answer 12

The deed of partnership

Question 13

What is the deed of partnership

Answer 13

A legal document that sets the rules

Question 14

Who owns the business (Private Limited Company)

Answer 14

Shareholders

Question 15

Number of owners (Private Limited Company)

Answer 15

Multiple

Question 16

Who controls the business (Private Limited Company)

Answer 16

Shareholders

Question 17

What liability is there (Private Limited Company)

Answer 17

Limited liability

Question 18

What happens if the owner dies (Private Limited Company)

Answer 18

The company still exists and whoever owns the share now continues with the business

Question 19

Who is an entrepreneur

Answer 19

An entrepreneur is someone who is willing to take the risks involved in starting a business. Entrepreneurs believe that the rewards of starting a business are worth risks and costs involved

Question 20

Whats a service

Answer 20

A service is providing work performed in an expert manner builder

Question 21

Customers

Answer 21

An individual or business that purchases the goods or services produced by a business

Question 22

What is a public limited company

Answer 22

A public limited company is one that has shares that are sold to the general public

Question 23

Define consumer

Answer 23

A purchaser of a good or service in retail

Question 24

Define need

Answer 24

Necessities that are provided by a business eg food, warmth, shelter, love and clothing

Question 25

Define Want

Answer 25

Luxuries that customers buy from a business

Question 26

Define interdependence

Answer 26

When one type of business depends on another

Question 27

Define unlimited liabilities

Answer 27

Where personal belongings of the owner are at risk if there are any problems. There is no limit to the amount of money that the owner has to pay out eg lose your car, home etc.

Question 28

Define unique selling point (USP)

Answer 28

Something about your product/service is different from competitors which makes it stand out

Question 29

Define stakeholders

Answer 29

A person or group of people who have interests or are impacted by a company

Question 30

Define franchisor

Answer 30

Selling the rights to a business

Question 31

Franchisee

Answer 31

Buying the rights to a business

Question 32

Define digital communication

Answer 32

The transmission of information electronically between computing devices

Question 33

Define ethics

Answer 33

Refers to whether a business decision is thought to be MORALLY RIGHT or WRONG. An ethical decision is made on the basis on what is judged to be morally right

Question 34

The economy

Answer 34

The economy is made up of millions of individual consumers, many thousands of businesses and governments all take decisions on what to buy and produce

Question 35

Define unemployment

Answer 35

Unemployment is a phenomenon that occurs when a person who is actively searching for employment is unable to find work. Unemployment is often used as a measure of the health of the economy

Question 36

Define consumer spending

Answer 36

Refers to the value of goods and services bought by consumers over a time period, usually a month or year

Question 37

Define Globalisation

Answer 37

The trend for markets to become worldwide in scope it is where world economics are inter connected

Question 38

Define Import

Answer 38

A good or service purchased from overseas customers in the domestic market

Question 39

Define export

Answer 39

A good or service produced in the uk and sold overseas

Question 40

Define legislation

Answer 40

A set of rules that governs a way the society operates it is another term for laws